Hurricane Sandy weighs on risk sentiment

Currencies Direct October 29th 2012 - 2 minute read

Another volatile end to a volatile
week last week with GBP/EUR swaying two cents throughout the week
from lows in the 1.22’s and finishing in the 1.24’s. GBP/USD
finished just above 1.61 after touching the low 1.59’s midweek and
EUR/USD finishing below 1.30 after a disappointing week for the

To start the week we have had more
negative news weighing on Euro sentiment with Spanish retail sales
figures posting a worse than expected figure of -10.9% from
consensus -6.2% and the, so called, Greek Troika  has
announced no more concessions will be made over Greek labour
reforms. Today we have German CPI figures expected to show weaker
inflation and weigh on Euro sentiment further.

Better then expected UK GDP figures
ignited hunger for GBP against EUR and USD. Today Sterling is
rather quiet with nothing of note coming out but markets will be
eagerly watching the release of Thursday’s Manufacturing PMI and
Nationwide House Price Index to see if the elation of last weeks
good GDP figure has transferred into the economy. 

US markets will be closed Monday
and possibly Tuesday as Hurricane Sandy looks to make landfall,
however USD has strengthened in Asian trade as investors look to
flee riskier assets, likely until they are able to survey the
damage of the storm and the toll it will take on America’s
recovery. Markets will this week be looking towards Friday’s
Non-Farm Payroll’s, ISM Manufacturing Index and US jobless

Other data our this week we have
Bank of Japan interest rate decision tomorrow  with ECB Mario
Draghi also hosting his monthly press conference and Spanish GDP.
Wednesday we have German Retail figures and Thursday Chinese PMI
manufacturing and UK Nationwide HPI and Manufacturing PMI. Friday
we have a host of PMI Manufacturing data from the four largest
Eurozone Nations. 

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Currencies Direct

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